Inflation has fallen, but freelancers are still feeling the squeeze

Inflation has unexpectedly dropped to 2.6%, ONS figures have revealed. But with the cost of living still high and inflation still outstripping earnings, the self-employed and others across the UK continue to feel the squeeze.

Falling from 2.9% in May to 2.6% in June, the drop in inflation was largely driven by declining fuel prices. The UK inflation rate began to rise sharply after the EU referendum last June, and this is the first time the overall rate has fallen since October last year.

Chris Bryce, IPSE’s Chief Executive, commented: “Although the drop in inflation is a welcome change to the pretty much continuous increases since autumn last year, it’s not enough to stop the cost of living squeeze. People across the UK are still facing rising food and household goods prices, with rates of pay that just aren’t keeping pace. We’ve also had continuous reports from the country’s freelance community that their business costs have been going up and up over the last year.

“On the other hand, the falling petrol prices that have driven this drop in inflation are definitely good for freelancers. Because of their regular long-distance trips to different clients’ premises, they are among the UK’s heaviest road users.

“The drop in inflation also justifies the Bank of England’s caution about raising interest rates. With these figures in mind, it’s looking like an increasingly sensible approach.”

Finance

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